There are two different "methods" using the valves. One is watching valve movement directly from the cam/pushrods/rockers. This is a good approximation of TDC and probably just fine for setting timing since DV's, Line Size, Injectors all effect timing so +/- 0.5* will not make a difference.
The other true "valve drop" method requires removing a valve spring on cyl #1 and marking the dampener when the valve stops moving up. Keep barring the motor and mark the dampener a second time when the valve starts to fall. Half-way between the two marks is true TDC. Essentially, the valve rides the piston and when the piston reaches the top of it's stroke, the valve stops rising. There is some "dwell time" at the top of the piston stroke so you continue to bar the motor till the valve starts to drop. Halfway between is true TDC.
If you are a perfectionist, it's difficult to judge precisely when the valve quits moving up, a precise method is to mark the dampener when a measured amount of the valve stem comes out. Example: Remove #1 intake valve spring and let valve drop down onto the piston. Bar the motor over till the valve stem is protruding 1". Mark the dampener. Continue to bar the motor until valve stem raises all the way then falls to 1". Mark the dampener. Measure between the marks and put a permanent paint mark halfway between. This is true TDC.
Caution: Do not remove the valve spring until the piston is close to TDC, otherwise it will fall all the way through.
Tip: Push down on the valve as you're barring the motor because the sticky valve guide will not let the valve drop properly.
Tip#2: If using the alternator nut to bar the motor, you can only turn the motor over backwards. If you go too far, you're stuck. Unless you use a 3/8" breaker bar and put downward pressure on the tensioner pulley, then it is possible to bar the motor forward.